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Wage negotiations between trade unions and the petroleum industry ended in a dispute this week. According to trade union Solidarity the dispute arose as no agreement could be reached between the various parties during the second round of negotiations.

Although Solidarity has also declared a dispute with the employer, the trade union is still determined to reach a favourable agreement that would be in the best interest of employee and employer alike.

Marius Croucamp, Solidarity’s Head of the Chemical Industry, says, “The dispute round, taking place in two weeks’ time, will give parties the opportunity to move closer towards reaching an agreement. Although the process is now being delayed and prolonged, we believe the dispute round is necessary for constructive negotiations to continue. Our members realise that strikes rarely work in employees’ favour, and therefore, we prefer to rather negotiate in a constructive manner with the employer at the negotiating table.”

“Although there is still a difference of three percentage points between Solidarity’s current demand and the employer’s offer, the trade union remains positive that it would be able to reach an agreement with the employer during the next round of negotiations. Protracted negotiations are in nobody’s interest. We are striving to negotiate the best possible salary agreement for our members without it causing any negative consequences for our members or the employer.”

Solidarity had already indicated earlier that cost savings initiatives of key companies within the petroleum industry would play a major role in this year’s negotiations at the National Bargaining Council for the Chemical Industry (NBCCI). Sasol’s Project Phoenix, in terms of which the company wants to reduce its operating costs by as much as R3 billion over the next three years, is one of the major factors impacting this year’s negotiations.

Solidarity is currently demanding a salary increase of 10% for its members in the industry, while the employers are currently offering an increase equal to the CPI inflation rate plus one percentage point, stretching over two years. Solidarity represents nearly 5 000 members in the petroleum industry alone. Negotiations with the NBCCI began in May.